Give Your Paycheck a Checkup

Have you given your paycheck a checkup?

This week (March 26th - 30th), the IRS is holding a weeklong campaign to encourage everyone to check their tax withholding.

Certifed Financial Planner™ and SHP Financial Co-Founder, Matthew Peck, talked with WJAR about who should check their tax withholding and how to do it.

Here are some of the points Matt made:

WHY IS THIS AN IMPORTANT STEP?

You will thank yourself come April, 2019 if you take the time now to check your withholding. If you are withholding too much out of your paycheck, you will get a big refund next year. That may sound like a good thing, but it’s really not. That’s your money the government is holding interest free. It’s money that you could be investing to grow throughout the year. However, if you withhold too little, you’ll owe at tax time. Ideally, you want to have just enough withheld so that the amount will come as close as possible to your actual tax liability for the year.

WHO SHOULD BE DOING A PAYCHECK CHECKUP?

Anyone can benefit from a paycheck checkup, but there are a few groups who should especially consider taking this step:

Anyone with a complicated financial situation

Two income families

People who hold more than one job

Anyone who itemized deductions in 2017

People who claim credits like the Child Tax Credit

WHAT STEPS CAN YOU TAKE TO CHECK YOUR WITHHOLDING?

Get your most recent pay stub from work.

If you’ve finished your 2017 taxes, have those handy as well. If not, get out your 2016 taxes. (source: IRS)

Disclosures

Investment advisory services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Offices in Woburn, Westborough and Hyannis are offices of convenience and only used for client meetings.

*Guarantees provided by insurance products are backed by the claims-paying ability of the issuing carrier.

All complimentary white papers, reports and book chapters are provided for informational purposes only. They are not intended to provide tax or legal advice. By requesting these materials you may be provided with information regarding the purchase of insurance and investment products in the future.

By contacting us, you may be offered information regarding the purchase of insurance and investment products.

The SHP Retirement Road Map is a registered service mark of SHP Financial, LLC. All other trademarks, registered trademarks or service marks belong to their respective holders.